Despite the numerous tax incentives and rebates associated with going solar, the cost of installing a solar system in your home is still quite substantial. This leaves many homeowners who are considering solar wondering, is it worth it? The major attraction of going solar is the fact that you will save money that you could otherwise use on your electric bill. You could try to save some money by comparing electric prices on Simply Switch, or you can just consider solar power. But considering the high installation cost of solar panels, how long will it take you to start seeing the actual savings on solar energy?
How much Energy do You Use?
The best scenario for saving money is actually using as less power as possible. If you have an average-sized solar system, it will supply all your energy bills without tapping into the grid. If you are lucky, you can use less energy than what your solar system is providing. This will give you extra energy to save or send back to the power grid.
Now, if this is the case, it’s easy to calculate your savings annually. The average home uses 10,400 kilowatt-hours per year, which after you multiply with an electricity rate of $0.13 per kWh and get $1335 per year. This means you should get your money back in less than 10 years. Every year after that is free.
What is the cost of power in your state?
In some states, the cost of electricity is absurd, going to 0.17 per kWh. That will mean that your annual savings will be way higher than in other states.
A system called net metering is an amazing way to save money if you can produce more energy power than you need. It allows you to send that energy to the power grid, which it’s deducted from month bill. This comes in handy because when you don’t use any electricity, you will still receive a standing order as long as you are connected to the power grid. However, this net metering will cover you for that cost so you will have zero electricity bill most of the time.
Did you know that properties with solar systems cost a lot more than those without? This is especially true in states where electricity is expensive. Your rental value could also be higher just because the house has solar energy.
The local governments have tried their best to promote renewable energy and especially solar by giving tax incentives and rebates. A typical solar installation can now cost you less than $12,000 after the incentives, which makes installation affordable for most people. The discounts translate to significant savings because you will break even sooner.
The best way to save using solar power is to pay everything up front so you can receive incentives. Be sure to see a couple of companies to compare prices and also get a system that is sufficient for your home. However, if you want a precise figure of how much solar energy will save you in its lifetime,25 years, you can expect anywhere from $16,000 to $40,000. The price of electricity will only go up while the cost of solar goes down.